NISM Series XIII Common Derivatives Certification Exam Notes

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  • Hedging Tools in India: Forwards, futures, swaps, and options widely used.
  • Derivatives and Economic Growth: By reducing risk, derivatives encourage trade, investment, and output growth.
  • Meaning of Currency Futures:Currency futures are standardized contracts traded on an exchange to buy/sell one currency against another at a specified future date and price.
  • Rationale for Currency Futures in India:To enhance transparency, reduce counterparty risk, and provide hedging tools for corporates and investors.
  • Futures vs. Forward Contracts:Futures are standardized, exchange-traded, and settled via clearing corporations, while forwards are OTC, customizable, and subject to counterparty risk.
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NISM Common Derivatives

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